Comprehensive details on the QVC Exports IPO, including the date, price, and allotment information
QVC Exports is engaged in the business of dealing in ferroalloys, including high-carbon silico manganese, low-carbon silico manganese, high-carbon ferromanganese, high-carbon ferrochrome, and ferrosilicon. It has published that its IPO is going to be open on 21st August and will end on 23rd August. The company aims to gather INR 24.07 crore with a fixed price band of INR 86 per share, a face value of INR 10 per share, and a market lot of 1600 shares.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on QVC Exports
- Allotment Dates for QVC Exports
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Promoters And Management
- Registrar for QVC Exports
- Offer Lead Manager
- Company Address
Company Overview
QVC Exports deals in ferro alloys like high-carbon silico manganese, low-carbon silico manganese, high-carbon ferro manganese, ferro chrome, ferro silicon, and other basic raw materials for steel making. The company has created a unique business model that acts as an intermediary by sourcing other commodities such as manganese ore, chrome ore, and coke for ferro alloy producers and then buying finished products and offering them to domestic as well as overseas steel industries. They have adopted an inward-outward approach to supply chain management, which has enabled them to cover various levels of steel supply by interacting with several customers and suppliers. Additionally, significant portions of its revenues are generated from exports to countries such as Taiwan, Japan, the United Kingdom, and other geographical locations, while it imports essential materials from Hong Kong and France.
Company Strategy
The company uses a two-fold approach aimed at gaining a competitive advantage in export activity and strengthening its corporate platform. The company focuses on exporting ferroalloys, making more than 82% of the company’s revenues developing relationships with international clients, and expanding the range of products to minimize risks in the markets. Additionally, QVC Exports intends to use the IPO fund for providing working capital, clearing its balance sheet debt, and other related strategic directions such as brand creation and strengthening infrastructure. This strategy offers a sustainable growth perspective to avoid financial risks associated with the growth of the company’s debt and helps to navigate the volatility of markets.
Details on IPO Date and Price Band
| IPO Open: | August 21, 2024 |
| IPO Close: | August 23, 2024 |
| IPO Size: | Approx INR 24.07 Crores (27,98,400 Equity Shares) |
| Fresh Issue: | Approx INR 17.63 Crores (20,49,600 Equity Shares) |
| Offer for Sale: | Approx INR 6.44 Crores (7,48,800 Equity Shares) |
| Face Value: | INR 10 Per Equity Share |
| IPO Price Band: | INR 86 Per Equity Share |
| IPO Listing on: | NSE SME |
IPO Objective:
The main goals of performing the IPO for QVC Exports are to provide the company with additional funds to improve its financial standing and sustain its activities. The obtained funds will be directed toward repaying the unsecured loans to decrease the level of debt and increase the company’s stability. Further, the company aims to spend funds to cater to working capital needs to address the costs of operations for efficient management of its resources. The rest of the fund will be used for working capital and other general corporate purposes for the company as this offers more flexibility when it comes to plans that help the business grow in the long run while improving its performance in general.
Market Lot Information on QVC Exports IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (1,600 shares) for INR 1,37,600
- Retail Maximum: 1 lot (1,600 shares) for INR 1,37,600
- S-HNI Minimum: 2 lots (3,200 shares) for INR 2,75,200
Allotment Dates for QVC Exports IPO
QVC Exports IPO open date is August 21 and the IPO close date is August 23. The IPO allotment date is August 26 and the listing date is August 28.
| IPO Open Date: | August 21, 2024 |
| IPO Close Date: | August 23, 2024 |
| Basis of Allotment: | August 26, 2024 |
| Refunds: | August 27, 2024 |
| Credit to Demat Account: | August 27, 2024 |
| IPO Listing Date: | August 28, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the QVC Exports. On the other hand, the IPO forms are also available for download on the NSE and BSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | PAT |
| 2022 | 127.83 | 125.48 | 0.91 |
| 2023 | 214.71 | 210.30 | 1.71 |
| 2024 | 454.63 | 443.91 | 3.93 |
QVC Exports has demonstrated significant financial growth over the past three years. In 2022, the company generated revenue of INR 127.83 crores with a PAT of INR 0.91 crores. By 2023, revenue increased to INR 214.71 crores, with PAT rising to INR 1.71 crores. The trend continued to be the same in 2024 when revenue surged to INR 454.63 crores, and PAT grew to INR 3.93 crores. This steady increase in revenue and profitability reflects QVC Exports’ effective cost management and expanding market presence, although expenses have also risen proportionately with revenue growth in the following years.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 7.20 with a Return on Net Worth (RoNW) of 17.75% and a Net Asset Value (NAV) per share of INR 40.56 in the financial year 2024. The IPO price band range of INR 86, with an issue of 27,98,400 equity shares to raise INR 24.07 crore and a face value of INR 10 per share to repay unsecured loans, meet working capital requirements, and fund general corporate purposes to strengthen financial stability and support long-term growth.
| Earnings Per Share (EPS): | INR 7.20 per Equity Share |
| Price/Earning P/E Ratio: | 11.94 |
| Return on Net Worth (RoNW): | 17.75% |
| Net Asset Value (NAV): | INR 40.56 per Equity Share |
Competitor Analysis
Here are some competitors of QVC Exports:
Ferro Alloys Corporation Limited
Ferro Alloys Corporation Limited (FACOR) is a leading Ferro Alloys company in India with concentrates on high carbon ferro chrome, silico-chrome and ferro-manganese manufacturing. It has well-established operations in domestic as well as in foreign markets and is renowned for its quality products and good logistics channels. The company is completely interconnected with its own captive power plants and mines, which makes it possible to control the supply of raw materials and energy needs while retaining a competitive advantage in the ferroalloys market.
Manganese Ore India Limited
Manganese Ore India Limited (MOIL) is one of India’s largest manganese ores producer companies in India and is playing a vital role in fulfilling the country’s manganese needs. It has numerous mines operating throughout India to provide premium manganese ore to industries such as steel, ferroalloys, and chemicals. The company possesses a strong asset base encompassing its beneficiation plants that improve the quality of the ores and make it a key supplier of manganese-based products within India and overseas customers.
Maan Aluminium Limited
Maan Aluminium Limited is a leading firm producing billets, ingots, and aluminum sheets for various industries in India. The company has highly developed production sites and focuses on quality making it a versatile supplier for several industries, including automotive, construction, and packaging industries. It is committed to innovation and sustainability to ensure proper production lines and quality for the domestic as well as international markets. The company’s strategic management plan is designed to enhance its foothold in the global market of aluminum.
Sree Metaliks Limited
Sree Metaliks Limited (Smel) is a well-known player in the Indian ferroalloys and iron ore industry dedicated to producing high-quality ferroalloys, like Ferro Manganese & Silicomanganese. The company has state-of-the-art facilities for production and processing to cater to various buyer sectors like steel manufacturing & metallurgy. Sree Metaliks Limited believes in delivering quality and sustainable business to all of its customers which includes products as well as being an environmentally friendly organization serving the nation both domestically and abroad.
Promoters And Management
- Nilesh Kumar Sharma
- Madhu Sharma
- Priti Sharma
- Matashree Mercantile Private Limited
- Unity Vyapaar Private Limited
Offer Lead Manager
Khandwala Securities Limited
Khandwala Securities Limited is a financial services company offering an array of investment solutions, including stock broking and portfolio management services amongst others. The company provides retail as well as institutional-oriented comprehensive range of financial services to clients in the domains of equity, derivatives & mutual funds, etc. The firm is guided by its vision to offer bespoke financial solutions along with the availability of extensive market insights, which assists clients in realizing their investment perspectives in today’s global/Indian markets.
Conclusion
The QVC Exports IPO presents a noteworthy investment opportunity with its opening on August 21, 2024, and closing on August 23, 2024. With a fixed price band of INR 86 per share and a face value of INR 10, the IPO aims to raise INR 24.07 crore to strengthen its financial position and support future growth. Investors should consider the company’s robust financial performance and strategic plans as they evaluate this IPO, aligning with its long-term goals and market potential
